Reliance Jio on Thursday announced that Saudi Arabia’s Public Investment Fund (PIF) would be investing Rs 11,367 crore in exchange for a 2.32 per cent equity stake in Jio Platforms.
This marks the 11th investment in Reliance Jio in eight weeks, giving Jio Platforms an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, according to a release by the company. Jio Platforms has so far raised Rs 115,693.95 crore from these investments.
Jio’s ten investors include Facebook, Silver Lake (which announced two rounds of investment), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and now the PIF.
“PIF is the sovereign wealth fund of Saudi Arabia and as part of its mandate to diversify its economy, has made its largest investment into the Indian economy to-date. This investment is in line with PIF’s strategy and mandate of investing in sectors and companies that generate long-term commercial returns to drive Saudi Arabia’s economic transformation as part of Vision 2030 objectives. This investment supports PIF’s mandate of building strong global investment partnerships to further Saudi Arabia’s investment reach and exposure,” the release said.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching andempowering the lives of 1.3 billion Indians.”
Yasir Al-Rumayyan, Governor of PIF, said “We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.”
The release added that the investment would be subject regulatory approval. This is noteworthy as the Competition Commission of India, India’s anti-trust watchdog, is currently currently reviewing Facebook’s proposed investment in Jio Platforms. Facebook would have the largest single stake in the company with a 9.9 per cent stake valued at Rs 43,574 crore ($5.7 billion).
Facebook has told the CCI that its investment would not alter the competitive landscape. JioMart and WhatsApp are expected to work in tandem to help connect three crore small grocery stores in India to digital transactions and markets, Mukesh Ambani said in April.
